Real estate no longer top investment choice for Americans? (Source: Housing Wire)
Americans are beginning to shift their investments to other areas as real
estate fell not one but two spots from being the top investment choice back in
2016.
Americans across all ages said that real estate is their third pick for the
investment of money they won’t need for more than 10 years, according to a survey
by Bankrate.
The survey showed 32 percent of American prefer to invest in stocks, followed
by 24 percent percent who say cash investments is best and 22 percent in real
estate. This is down from 2016, when real estate was the No. 1 choice.
In fact, Bankrate explained that this is the first time in four years that
respondents didn’t favor real estate as their top choice.
“For investment horizons of longer than 10 years, the stock market is an
entirely appropriate investment,” Bankrate Chief Financial Analyst Greg McBride
said. “Cash is not, and especially if you’re not seeking out the most
competitive returns.”
The majority of Americans actually favor investing in the stock market,
including 33 percent of Gen Xers, 38 percent of Baby Boomers and 44 percent of
the Silent Generation, however Millennials favored cash investments. The survey
showed 30 percent of Millennials said cash is their favorite long-term
investment.
My concern: have people given up on their homeownership dreams? I am not sure this is the case. But the article was written in July of 2018, and the stock market was very high, and had been going up consistently. We can safely assume this is not always going to be the case in the future, which may in turn change those stats.
See the whole article by Kelsey Ramirez, Reporter at HousingWire.
Thanks for reading,
Francis
